Latest from Gross (Headline)

scott

PIMCO's Gross says favours shorter duration, and inflation-protected debt; says also likes dividend paying stocks
http://ransquawk.com/headlines/212581

AQR Risk Parity (AQRNX)'s inflation bucket does have investments in global TIPS, and WIP is an etf that tracks global inflation-protected bonds, and I'm sure there are other global TIP plays. Pimco has a new dividend fund from the managers of Thornburg Global Income Builder. I own a little PQIDX, but I haven't been overly thrilled with it. Given the desire for yield, there's tons of new dividend products coming out and MLPs remain popular (although I think overbought, but that could go on for ages.) Salient MLP Energy and Infrastructure (which I took profits on) is my favorite MLP fund (SMF)

MaxBialystock

Methinks uncle Bill Gross reminds me of me, and I can claim to have no special skill in figuring out Mr. Market. I think that lately, he's been reacting, rather than reading, the Market. I know he's got PIMCO along with El Erian. Somehow, El Erian makes more sense to me and is more worth listening to.

VintageFreak

Come on now. Are we sure he is not just plugging his new dividend funds from PIMCO? VFINX will do just find and will be more tax efficient than dividend funds compensating for any outperformance.

His TIPs recommendation I'm viewing suspect. I sold my VIPSX few weeks back. I was looking to re-enter, but I'll wait now. I enjoyed a good long run with VIPSX, but given official inflation expectations are kept low, thinking pure stocks are a better bet. Bought other Vanguard equity funds.

Yes, I trade Vanguard. Sue me.

AndyJ

I guess we'll have to see what the Pttrx portfolio looks like as of 3-30, but as of the end of Feb., he wasn't practicing what he's preaching now: his gov't bond holdings were of the long-ish variety (37% of market value, 44% duration-weighted).

He could be talking his book as he has in the past; i.e., shifted to shorter duration this month, and now he's telling the world at large to buy shorter duration and so push his new holdings' prices up.

BobC

We have sold all of our TIP holdings, which is where almost all of our inflation bond dollars were. We have a few dollars at PIMCO and Vanguard in their funds and will sell them this week, too. With yields already at negative levels or close to negative levels, there is no incentive to owning tips. And long-term U.S. treasury bonds are for suckers only.

For dividend income, we like SDY, TIBIX, PAUDX, PFF, WASIX, EM bonds.

FWIW, Gross is really scrambling to retain dollars, at least that is how it appears. The big gains they made on derivatives appear to be history, so the fund is scrambling to find a magic bullet, which may not exist. In the meantime, Arnott looks to have as good a handle on things as anyone. We like what we see with PAUDX, and the dividend is pretty attractive, too.

hank

Agree with AJ. Nothin against BG. Bright as they come (former expert black-jack dealer). But it would border on "unprofessional" to say where he really thinks rates are going. Would be front-running himself & damaging fundholders. So, yep, he's a media star and runs good funds, but I wouldn't dance to his tune as expressed on cnbc or anywhere.

PopTart

Gross and El Erian seem to be everywhere. CNBC and the PBS Nightly Business Report are the examples that come to mind. Are "guest commentators" considered wiser "gurus" the more often they appear on TV and the internet? Is this a conscious effort on Gross and El Erian's part to raise their profiles even more? What gives?